How come the CPI (consumer price index), does not include food and energy costs?

1 Answer

Answer :

It’s because they are necessities. They are not considered indicators of consumer spending, because people buy them in all economic times.

Related questions

Description : from 1980 to 1990, the consumer price index (cpi) increased from 82.4 to 130.7 if a gallon of apple juice cost $0.95 in 1980 and the price of apple juice increased at the same rate as the cpi from 1980 to 1990 approximately how much did a gallon of apple?

Last Answer : 1.51

Description : 1. Assume that there are only two goods: A and B In the base year, Quantity Price A 10 $1 B 10 $4 In the current year, Quantity Price A 20 $ 5 B 25 $20 The Consumer Price Index (CPI) for the current year is: a. 50 b. 100 c. 200 d. 500 e. 60

Last Answer : d. 500

Description : The TQM initiative reduces material costs and labor costs. a. Concurrent Engineering (CCE)/Six Sigma b. Benchmarking c. Continuous Product Improvement systems (CPI) d. Channel Support systems e. Quality Initiative Training (QIT)

Last Answer : a. Concurrent Engineering (CCE)/Six Sigma

Description : This process management initiative reduces material costs and administrative overhead. a. Benchmarking b. Vendor/Just-in-Time Inventory (JIT) c. Continuous Product Improvement systems (CPI) d. Channel Support systems e. Quality Initiative Training (QIT)

Last Answer : b. Vendor/Just-in-Time Inventory (JIT)

Description : This process management initiative reduces material cost and, to a lesser degree, labor costs. a. Concurrent Engineering (CCE)/Six Sigma b. Benchmarking c. Continuous Product Improvement systems (CPI) d. Channel Support systems e. Quality Initiative Training (QIT)

Last Answer : c. Continuous Product Improvement systems (CPI)

Description : Investing in CPI can a. reduce administrative costs. b. reduce material and administrative costs. c. reduce material costs. d. reduce labor costs and reduce R&D cycle time.

Last Answer : c. reduce material costs.

Description : A cost performance index (CPI) of 0.89 means:  A. At this time, we expect the total project to cost 89 percent more than planned  B. When the project is completed we will have spent 89 ... at 89 percent of the rate planned  D. The project is only getting 89 cents out of every dollar invested

Last Answer : D. The project is only getting 89 cents out of every dollar invested

Description : Which of the following Price Indices of India is considered for measuring ‘Headline Inflation’? A. A GDP Deflator B. B CPI-AL/RL C. C CPI-IW D. D WPI

Last Answer : D. D WPI

Description : A limitation of sales promotion is that excessive sales promotion efforts directed at price reductions can lead to 1. stronger consumer demand for information provided through advertising 2. a decline in ... decline in the organization's image 4. increased costs of promotion 5. none of thes

Last Answer : a decline in the brand's image

Description : A limitation of sales promotion is that excessive sales promotion efforts directed at price reductions can lead to A)stronger consumer demand for information provided through advertising. B)a decline in the brand's image. C)a decline in the organization's image. D)increased costs of promotion.

Last Answer : B)a decline in the brand's image.

Description : A tool that allows an advertiser to compare the costs of several vehicles within a specific medium relative to the number of persons reached by each vehicle is called a A)cost comparison indicator. B)media comparison selector. C)unit -price selector. D)cost/person index. E)vehicle/price indicator.

Last Answer : A)cost comparison indicator.

Description : How does the consumer price index affect the cost of living?

Last Answer : The higher the consumer price index becomes, the higher the cost of living will be because it will take a larger income to buy the same things they used to buy due to increased prices.

Description : What is the consumer price index used for?

Last Answer : It is used for measuring inflation. It will track a basket of goods over a period of time measuring the cost along the way. The rise and fall of inflation is based on the consumer price index.

Description : The basis of determining dearness allowance to employees in India is - (1) National Income (2) Consumer Price Index (3) Standard of Living (4) Inflation Rate

Last Answer : (2) Consumer Price Index Explanation: The Consumer Price Index Numbers for Industrial Workers CPI (1W) is utilized for fixation and revision of wages and determination of variable Dearness ... utilized as an indicator for measuring inflationary trend in the country and for policy formulations.

Description : Which of the following brings out the 'Consumer Price Index Number' for Industrial workers? (1) RBI (2) The Labour Bureau (3) Commerce Department (4) NITI Aayog

Last Answer : (2) The Labour Bureau Explanation: The Consumer Price Index Numbers for Industrial Workers CPI (IW) are being compiled, maintained and disseminated by the Labour Bureau since its inception in October, 1946. ... of the economy. These index numbers are compiled by the Bureau on month to month basis.

Description : State which of the following is correct? The Consumer Price Index reflects - (1) the standard of living (2) the extent of inflation in the prices of consumer goods (3) the increasing per capita income (4) the growth of the economy

Last Answer : (2) the extent of inflation in the prices of consumer goods Explanation: A consumer price index (CPI) measures changes in the price level of consumer goods and services purchased by households ... , pensions, for regulating prices and for deflating monetary magnitudes to show changes in real values.

Description : NIFTY is associated with - (1) Cloth Market Price Index (2) Consumer Price Index (3) BSE Index (4) NSE Index

Last Answer : (4) NSE Index Explanation: The NSE's key index is the S&P CNX Nifty, known as the NSE NIFTY (National Stock Exchange Fifty), an index of fifty major stocks weighted by market capitalization. ... that were widely regarded as solid buy and hold growth stocks. NIFTY means National Index for Fifty.

Description : Inflation refers to a fall in the value of money. Which of the following is the key measure of inflation in India? A. Consumer Price Index B. Wholesale Price Index C. Personal Consumption Expenditures Price Index D. GDP Deflator E. All of the above

Last Answer : B. Wholesale Price Index Explanation: Inflation rates in India are usually quoted as changes in the Wholesale Price Index, for all commodities. Many developing countries use changes in the Consumer Price Index (CPI) as their central measure of inflation.

Description : In India, Inflation measured by the : A. National Income Deflation B. Wholesale Price Index number C. Consumer Price Index D. None of above

Last Answer : C. Consumer Price Index

Description : NIFTY is associated with (1) Cloth Market Price Index (2) Consumer Price Index (3) BSE Index (4) NSE Index

Last Answer : NSE Index

Description : Which of the following brings out the ‘Consumer Price Index Number’ for Industrial workers? (1) RBI (2) The Labour Bureau (3) Commerce Department (4) NITI Aayog

Last Answer : The Labour Bureau

Description : State which of the following is correct ? The Consumer Price Index reflects : (1) the standard of living (2) the extent of inflation in the prices of consumer goods (3) the increasing per capita income (4) the growth of the economy

Last Answer : the extent of inflation in the prices of consumer goods

Description : The basis of determining dearness allowance to employees in India is _______ (1) National Income (2) Consumer Price Index (3) Standard of Living (4) Inflation Rate

Last Answer : Consumer Price Index

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Last Answer : B)F.O.B. factory.

Description : How to convert cpi and mpl files?

Last Answer : Mac or PC?

Description : What are the major differences between the policies of CPI(M) and CPI? -SST 10th

Last Answer : The major differences between the policies of CPI (M) and CPI are as followes:- Policies of CPI (M) :- 1. Accepts democratic elections as a useful and helpful means for securing the objective of socio- ... the poor. 2. Opposed to the force of secessionism and communalism. 3. It was formed in 1925.

Description : What is the chief objective of Communist Party of India – Marxist (CPI-M)? -SST 10th

Last Answer : The chief objective of CPI–M is to secure socio-economic justice in India.

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Last Answer : Kerala, West Bengal, Punjab, Andhra Pradesh and Tamil Nadu.

Description : When was the Communist Party of India-Marxist (CPI-M) formed? -SST 10th

Last Answer : The CPI(M) was formed at the Seventh Congress of the Communist Party of India held in Calcutta from 31 October to 7 November 1964.

Description : What is the full form of 'CPI' ? -How To ?

Last Answer : The full form of 'CPI' is (M) Communist Party of India (Marxist)

Last Answer : The full form of CPI (M) is Communist Party of India / Marxist

Description : Can you tell me what a CPI calculator does?

Last Answer : A CPI calculator calculates inflation, it utilizes the Consumer Price Index, which is a tool for monitoring the changes in costs of household items, thus tracking inflation.

Description : Can is the function of a CPI calculator?

Last Answer : A CPI calculator calculates inflation, it utilizes the Consumer Price Index, which is a tool for monitoring the changes in costs of household items, thus tracking inflation.

Description : What exactly does the CPI calculator calculate?

Last Answer : The CPI calculator calculates inflation, and it measures price changes. The Security Administration uses a CPI calculator to calculate cost-of-living adjustments.

Description : In which of the following cases project is in better shape?  A.When both CPI and SPI are less than 1  B.When CPI is more than 1 and SPI is less than one  C.When CPI is less than one and SPI is more than one  D.When both CPI and SPI are more than one

Last Answer : D.When both CPI and SPI are more than one

Description : The three different service models are together known as the _____ model of cloud computing. a) SPI b) SIP c) CPI d) All of the mentioned

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Description : These TQM initiatives reduce administrative overhead; reduces the R&D cycle time and enhances the effectiveness of the promotion and sales budget. a. Concurrent Engineering (CCE); Channel Support systems ... Inventory d. Channel Support systems and Six Sigma e. Quality Initiative Training (QIT)

Last Answer : b. Quality Function Deployment and Benchmarking

Description : This process management initiative reduces R&D cycle time, a. Concurrent Engineering (CCE) b. Benchmarking c. Continuous Product Improvement systems (CPI) d. Channel Support systems e. Quality Initiative Training (QIT)

Last Answer : a. Concurrent Engineering (CCE)

Description : This process management initiative increases the effectiveness of the Sales Budget and therefore demand. a. Benchmarking b. Vendor/Just-in-Time Inventory (JIT) c. Continuous Product Improvement systems (CPI) d. Channel Support systems e. Quality Initiative Training (QIT)

Last Answer : d. Channel Support systems

Description : Which among the following data are released in India on monthly basis? 1. CPI 2. WPI 3. IIP Choose the correct option: A. Only 1 & 3 B. Only 2 & 3 C. Only 1 D. 1,2 & 3

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Description : Economic growth can be measured by ___________. A. the CPI. B. the CBI. C. GDP. D. MPC.

Last Answer : C. GDP.

Description : Which of the following is not a criterion for successful market segmentation? a. there must be difference among consumers b. each segment must be located within a geographical area c. there must be consumer similarities within each segment identified d. a segment must be large enough to cover costs

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Last Answer : Where ultimate consumer power is weak

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Last Answer : B)of the strength of large national retailers

Description : The costs of marketing activities account typically for what proportion of consumer spending on goods and services? A)one half B)one third C)one fourth D)one fifth

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Description : A profitability index (PI) of .92 for a project means that . A. The project's costs (cash outlay) are (is) less than the present value of the project's benefits B. The project's NPV is ... is greater than 1 D. The project returns 92 cents in present value for each current rupee invested (cost)

Last Answer : C. The project's NPV is greater than 1

Description : Where do I find a consumer confidence index?

Last Answer : Well... the CCI started in 1967, so I doubt you'll find it back to 1900. But you might be able to find something similar. But I'm not quite the person to ask =)

Description : Which city is the World’s Largest Consumer of Cannabis according to the Weed Index- 2018 report? (a) New York (b) New Delhi (c) Karachi (d) None of These

Last Answer : New York

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Last Answer : a) Developers salaries

Description : )Quality costs include : 1. the total of all costs incurred to assure the production and delivery of acceptable products and services.  2. Only costs classified as prevention, detection and ... rework due to defects, customer returns and warranty costs.  4. The expense of upper management

Last Answer : 1. the total of all costs incurred to assure the production and delivery of acceptable products and services.